ILoveStocks, there has been a lot of comparison of HMGP to STXX but it has mostly been a comparison of the two charts. I looked at STXX in a bit more detail but not a great amount of detail and what I found is something that actually scares me a bit in that, at least to me, HMGP seems like it could/should be even better than STXX. Not to put STXX down but I looked at their financial statement and from the extensive DD I've done into Hemi, it seems to me that HMGP, even right now, looks better as a company. Granted, hard to compare a .29 stock with a $9 stock but that's what I see and even when comparing the market caps of STXX at ~$127m and HMGP at ~$14mil, it makes our market cap seem ludicrously low!
We have around 1/10 the market cap of STXX yet STXX had revenues from both the sales of gas and oil for the first three months of this year of "only" about $32,000 a month. And, this is only their REVENUE meaning total taken in... still have to subtract their expenses from that. Then, a press release just a couple weeks ago they talk about buying back additional working interest in one of their properties for $1.8mil and doing so with their "credit facility" so they borrowed the money to do this. Plus, they have a lot of other debt as well. Just to show you how valuable it is to be in a debt free company like Hemi with NO debt, look at STXX's interests costs for the first three months of this year... they paid out $314,353 in INTEREST for the items they borrowed on but only took in $93,000 in oil and gas revenues???!!!??? Now look at just the ONE Hemi well, even if choked back to 40bopd, is still around $72,000 a month!!!!!! That is just ONE WELL. Granted, that is their best individual well but they have many wells between 5 and 8 bopd and even more a little less than that. When added all up, and knowing Hemi has NO DEBT, it is a bit exciting to be in Hemi and buying while all this is not yet realized by others :)
Another thing to think about with Hemi is because they haven't done creative financing or needed to work special deals, they have been able to,I believe, get 100% working interest in most/all their leases... at least from what I've read and listened to in their interviews. Don't quote me on that as fact because I obviously don't know if everything is like this but based on what I've read and heard in the interviews, I haven't heard where that is not the case. Anyway, point being is that STXX blows HMGP away in bopd production BUT on one of their recently drilled very good wells, they hold only a 12% working interest! So, an oil company can have 1000 bopd total production but if they have only a 12% working interest it is like only 120 bopd. Big difference. So, on the surface if an oil company has 1000 bopd and HMGP has only 165 (round number based on 5000 bopm) one might immediately think the other company is blowing away HMGP and they would be correct... for production... but maybe not when it comes to the bottom line... which is what really matters ;) Hemi has an incredible business plan and I'm more than happy to ride their coattails and retire early. LOL!
Anyway, my main point of the above rambling post is that people often compare HMGP to STXX but if you sit down and REALLY compare the two, you can see how it is possible that Hemi could/should blow companies like STXX out of the water in the not too distant future.
In all fairness, I did not read and study STXX's entire report and picked things out that I wanted to talk about. They probably are a great company and worth every bit of their share price. My point was more to show how ludicrously undervalued HMGP is and not point out STXX's downside as I know they have a lot of land and reserves :)
AI
